Search found 4089 matches

by Peter Foley
Wed Dec 13, 2017 8:23 pm
Forum: Investing - Help with Personal Investments
Topic: IRAs in wrong bucket - how do I fix it?
Replies: 4
Views: 418

Re: IRAs in wrong bucket - how do I fix it?

Just in case you are looking for a second opinion. The real issue here is are taxes due. As Duckie stated, there are no tax issues (implications) for the sale of assets inside a traditional IRA or Roth account.
by Peter Foley
Wed Dec 13, 2017 12:14 am
Forum: Investing - Help with Personal Investments
Topic: Tax questions about moving taxable to lower ER options
Replies: 8
Views: 633

Re: Tax questions about moving taxable to lower ER options

Another thought. High expenses are a drag on returns because they compound over time. Think of them as being a negative version of compound interest, bad for a year or two, horrible for a 10 year period. Keeping in mind some of the thresholds Grabiner mentions, I would be tempted to spread this out ...
by Peter Foley
Tue Dec 12, 2017 9:45 am
Forum: Investing - Theory, News & General
Topic: So... how do I need to "further" my investing knowledge?
Replies: 15
Views: 1433

Re: So... how do I need to "further" my investing knowledge?

TheBogleWay wrote: However.. what are the cliff notes? Is the general strategy if stuff starts tanking just don't sell no matter how tempting it is? For me the most important aspect was understanding "set points." If we bought something for a certain price we believe that is its value regardless of ...
by Peter Foley
Mon Dec 11, 2017 9:11 pm
Forum: Investing - Help with Personal Investments
Topic: Boglehead Beginner
Replies: 10
Views: 1020

Re: Boglehead Beginner

Based on the information you provided I would go the Vanguard route. The Roth Solo 401K sounds like a good option for a self employed person. If you are thinking of retiring relatively early it is important to get a Roth going as soon as possible. In the overall scheme of things I don't think a shor...
by Peter Foley
Mon Dec 11, 2017 8:58 pm
Forum: Investing - Theory, News & General
Topic: So... how do I need to "further" my investing knowledge?
Replies: 15
Views: 1433

Re: So... how do I need to "further" my investing knowledge?

I agree with the comments about understanding behavioral aspects of investing. This will help you to stay the course during the next recession. Why Smart People Make Big Money Mistakes by Belsky and Gilovich and Your Money & Your Brain by Jason Zweig are two oft recommended books on the subject. I f...
by Peter Foley
Sun Dec 10, 2017 9:37 pm
Forum: Personal Consumer Issues
Topic: 4WD necessary/recommended on Big Island, HI
Replies: 34
Views: 1998

Re: 4WD necessary/recommended on Big Island, HI

Captain Cook: pOneyboy wrote Captain cook...we kayaked here early morning. Like 7am. Rented a kayak the night before since no one is open that early. You can keep them for 24 hours. Dolphins are always here. We got to snorkel with them on our own...it was awesome being 20 feet away and hearing them ...
by Peter Foley
Fri Dec 08, 2017 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 338
Views: 130653

Re: Retiree Portfolio Model

BigFoot There is an interesting discussion in this thread that has relevance for your RPM: https://www.bogleheads.org/forum/viewtopic.php?f=2&t=233796 The basic question is that when running scenarios, should one set all accounts to the same rate of return? Conversely, one could argue that because m...
by Peter Foley
Thu Dec 07, 2017 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Why ORP-I suggests you spending down aft-tax saving 1st?
Replies: 29
Views: 2230

Re: Why ORP-I suggests you spending down aft-tax saving 1st?

randomguy wrote: I agree with other people in that you have to make sure the returns are the same in all the accounts (same AA and expected returns) or i-ORP will just resort to spending the account with the lowest return first in most cases. I have made that mistake more than once:) I have struggle...
by Peter Foley
Wed Dec 06, 2017 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: Prepayment of SALT Taxes? [State and Local]
Replies: 205
Views: 14330

Re: Prepayment of SALT Taxes? [State and Local]

When bunching deductions, for many individuals three items are fairly commmon: 1. Prepay next year's state income taxes due before December 31st (if your state has an income tax) 2. Prepay all or some of your next year's property tax (allowed in some states and municipalities) 3. Contribute more to ...
by Peter Foley
Tue Dec 05, 2017 10:04 pm
Forum: Personal Finance (Not Investing)
Topic: Why ORP-I suggests you spending down aft-tax saving 1st?
Replies: 29
Views: 2230

Re: Why ORP-I suggests you spending down aft-tax saving 1st?

munemaker wrote: Working with BigFoot's spreadsheet and iOrp, spending the taxable first while making heavy Roth conversions gave me the best results, and I experimented with it quite a bit. I've commented on both the RPM and I-ORP calculators before. I have run a number of scenarios in both program...
by Peter Foley
Mon Dec 04, 2017 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: Parents Retirement
Replies: 13
Views: 1765

Re: Parents Retirement

When considering annuities, the advice I have often seen is to hold off until one is a bit older and also to consider buying two annuities, the second after a 5 year delay. Two annuities helps offset the impact of inflation.
by Peter Foley
Mon Dec 04, 2017 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes in Retirement: Resources?
Replies: 11
Views: 1299

Re: Taxes in Retirement: Resources?

The information on the Wiki is a very good starting point.

Here is a link to the outline of tax topics:
https://www.bogleheads.org/wiki/Outline ... _investors
by Peter Foley
Mon Dec 04, 2017 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Trust or Will
Replies: 14
Views: 1576

Re: Trust or Will

This was one of the topics covered fairly extensively in the estate planning class I took at the University of Minnesota. In very general terms a trust was strongly recommended when one was subject to the federal estate tax, or owned property in multiple states, or when a household was a blended one...
by Peter Foley
Mon Dec 04, 2017 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: Family Finance Meeting Agenda
Replies: 23
Views: 2258

Re: Family Finance Meeting Agenda

My wife and I have a "ways and means" committee meeting a few times every year. It is not regularly scheduled. The topics that are discussed with some frequency are replenishing our cash accounts and gifting to our children and grandchildren. The two topics are closely related.
by Peter Foley
Mon Dec 04, 2017 4:51 pm
Forum: Investing - Help with Personal Investments
Topic: The 4% rule, Firecalc and Human Nature
Replies: 86
Views: 5909

Re: The 4% rule, Firecalc and Human Nature

ruralavalon wrote: The so-called "4% rule " is not a rule, it is not a withdrawal strategy, it is a planning tool.The Trinity study and others offer it as a planning guideline. The Trinity paper says "The word planning is emphasized because of the great uncertainties in the stock and bond markets. M...
by Peter Foley
Sat Dec 02, 2017 8:36 pm
Forum: Investing - Help with Personal Investments
Topic: Help me Help mom
Replies: 29
Views: 1556

Re: Help me Help mom

You are getting a lot of conflicting advice as the details of your mother's holdings are made known. My priority would be simplification with an eye on taxes. There seems to be plenty of money, you just have to make the risk manageable so your mother does not outlive her assets. Figure out her tax b...
by Peter Foley
Wed Nov 29, 2017 8:49 pm
Forum: Investing - Help with Personal Investments
Topic: Help with mom's portfolio plan [taxes, SS, & selling $100k of single stock]
Replies: 53
Views: 2492

Re: Help with mom's portfolio plan [taxes, SS, & selling $100k of single stock]

guitarguy wrote Set her IRA to reinvest the dividends rather than take them as distributions Right on! A very simple thing that would help your mother's tax situation during the sell off of the stock position - stop taking any money out of the IRA. As she liquidates she will have plenty of cash. Thi...
by Peter Foley
Wed Nov 29, 2017 5:37 pm
Forum: Investing - Help with Personal Investments
Topic: How much to convert to Roth without raising tax bracket
Replies: 12
Views: 1534

Re: How much to convert to Roth without raising tax bracket

Just checking: Do you understand how marginal tax brackets work? It is only the amount that exceeds the maximum that is taxed at a higher rate. Simplified Example - for 2017 the top of the 15% tax bracket is $75,900 in taxable income for married filing jointly. If you had $65,000 in regular taxable ...
by Peter Foley
Tue Nov 28, 2017 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning question (should we add beneficiaries to savings account?)
Replies: 33
Views: 1923

Re: Estate planning question (should we add beneficiaries to savings account?)

Lastrun » Mon Nov 27, 2017 8:38 pm bsteiner wrote: ↑Mon Nov 27, 2017 8:22 pm In addition to defeating estate plans and making estate administration more complicated, joint accounts and TOD accounts generate lots of work for our litigators. Probably your best line ever. So true. There are undoubtedl...
by Peter Foley
Mon Nov 27, 2017 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Cleaning up my portfolio and embarking on the 3 fund theory
Replies: 2
Views: 414

Re: Cleaning up my portfolio and embarking on the 3 fund theory

You mention that the IRA is about 40% of your retirement savings. If your other retirement savings are in a tax deferred account (401k) or Roth there is no issue. However, if some of your retirement savings are in a taxable account you might want to hold slightly different index funds to avoid any i...
by Peter Foley
Mon Nov 27, 2017 6:15 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning question (should we add beneficiaries to savings account?)
Replies: 33
Views: 1923

Re: Estate planning question (should we add beneficiaries to savings account?)

My wife is handing the financial affairs of her mother, age 97 with some dementia. Her mother is in assisted living so there is some need to keep a healthy cash balance in her savings and checking accounts. Per her will all assets are divided equally among her 4 children. My wife's approach was to c...
by Peter Foley
Mon Nov 27, 2017 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement: how to forecast where you’re at?
Replies: 35
Views: 3240

Re: Retirement: how to forecast where you’re at?

One of our MN Bogleheads did a review of retirement calculators and presented the results at a quarterly meeting. Firecalc came out on top with respect to planning for retirement. The Retiree Portfolio Model (RPM) and I-ORP were the two best planners for "spending" in retirement. IMHO RPM does a bet...
by Peter Foley
Sun Nov 26, 2017 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 26038

Re: Why not take Social Security at 62

smitcat wrote: We will likely be delaying SS as long as possible (70/64) for a number of reasons: - Roth conversions - best eventual younger spousal benefits - after tax income estimated at each age If you want to get a real good look at what your 'spendable' amount of income will be utilizing vario...
by Peter Foley
Sat Nov 25, 2017 11:26 pm
Forum: Investing - Help with Personal Investments
Topic: Best Fund for Back Door Roth IRA
Replies: 6
Views: 420

Re: Best Fund for Back Door Roth IRA

I'm with TomatoTomahto on this one. Total Stock market in the Roth to keep things simple.

If after a couple years of Roth contributions you feel your AA is a little stock heavy, you can just exchange one target date fund for one with a larger bond allocation (typically an earlier date fund).
by Peter Foley
Sat Nov 25, 2017 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: Help with estate planning
Replies: 21
Views: 2157

Re: Help with estate planning

Shepherd wrote: We checked with lawyer and went ahead and transferred all of the after tax accounts to my mother. Not sure if this can be reversed. Moving the assets from one account to another should not make a difference with regard to managing all of the taxable as a single portfolio. If these we...
by Peter Foley
Fri Nov 24, 2017 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: Help with estate planning
Replies: 21
Views: 2157

Re: Help with estate planning

bsteiner wrote: If there isn't a disclaimer trust as a backup (it's hard to imagine anyone doing a Will for someone worth $11 million without either a mandatory credit shelter trust or a disclaimer trust as backup), it may be worth running some numbers to see whether it's better to disclaim IRA bene...
by Peter Foley
Fri Nov 24, 2017 11:35 am
Forum: Personal Finance (Not Investing)
Topic: Tax Returns - How Long Do you Keep?
Replies: 56
Views: 4509

Re: Tax Returns - How Long Do you Keep?

I purge supporting documentation after 7 years with the exception of documentation related to rental property cost basis. I have just the 1040's for about the last 30 years.
by Peter Foley
Fri Nov 24, 2017 10:28 am
Forum: Investing - Help with Personal Investments
Topic: Help with estate planning
Replies: 21
Views: 2157

Re: Help with estate planning

Certainly you need to follow up on bsteiner's advice and look for evidence that additional estate planning is already in place.

Absent other options I think disclaiming all, or a good portion of, the IRA is a good idea. I would be inclined to disclaim the entire amount.
by Peter Foley
Tue Nov 21, 2017 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: Retire couple Roth Conversion Help
Replies: 47
Views: 3994

Re: Retire couple Roth Conversion Help

Divebums wrote: Does the Medicare Part B premium go up a fixed amount or is it tied to how much income you have? There are tables on the web that cover this but here is the basic formula. Monthly premium for married filing jointly: Modified Adjusted Gross Income 2 years prior, Monthly premium <170,0...
by Peter Foley
Mon Nov 20, 2017 9:35 pm
Forum: Personal Consumer Issues
Topic: What brand of used car - Hyundai vs Nissan?
Replies: 27
Views: 1682

Re: What brand of used car - Hyundai vs Nissan?

We owned an Elantra which we gifted to our daughter. We then bought a Kia Forte. I like the idea of a 60 month warranty when buying a used car.
by Peter Foley
Sun Nov 19, 2017 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: Retire couple Roth Conversion Help
Replies: 47
Views: 3994

Re: Retire couple Roth Conversion Help

If you run your scenarios through I-ORP or the Retiree Portfolio Model you should get an idea as to the payoff on your conversion approach. A note on #4. Medicare part B premium is based on Modified Adjusted Gross income. Over $170,000 two years prior and the part B premium goes up. At the top of th...
by Peter Foley
Sat Nov 18, 2017 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: What we don't know
Replies: 42
Views: 2910

Re: What we don't know

Quoting Taylor, and many others I am sure, "there are many roads to Dublin." We also know that some of the routes are well tread and that many of those who have arrived have shared their experience with us. First you need to start out -live below your means - and you have to manage risk and stay the...
by Peter Foley
Fri Nov 17, 2017 11:42 pm
Forum: Investing - Help with Personal Investments
Topic: Which Target Date Fund?
Replies: 13
Views: 1119

Re: Which Target Date Fund?

As mega 317 stated, you really have to look at the make up of the funds. Target Retirement Funds with the same date can have different AA's and can have different glide paths as they approach the target date. With similar expense ratios choose the fund that best meets your AA criteria. Also note tha...
by Peter Foley
Fri Nov 17, 2017 10:10 pm
Forum: Investing - Help with Personal Investments
Topic: Spending Taxable to Zero during Retirement
Replies: 42
Views: 5054

Re: Spending Taxable to Zero during Retirement

Gerry L wrote: I think the flexibility of having different types of accounts to draw from in retirement is a definite plus. I agree. We currently have about 4 year's worth of expenses in taxable and have spent down at least that many years worth of expenses since we retired 5+ years ago. We always f...
by Peter Foley
Fri Nov 17, 2017 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: RMD account
Replies: 16
Views: 1362

Re: RMD account

Like Celia, I'm inclined to advise you to use those funds you current have if they meet your needs. No need to add additional complication to your portfolio. A related issue . . . If your annual expenses of $65,000 include donation to charities, why not just donate a portion of your RMD to those cha...
by Peter Foley
Thu Nov 16, 2017 9:18 pm
Forum: Investing - Help with Personal Investments
Topic: Help with 401K fund choices, please
Replies: 12
Views: 721

Re: Help with 401K fund choices, please

Welcome to the forum. You seem to be doing well living below your means and saving for retirement. Your Voya plan has okay, not great, choices. The expense ratio for the funds you chose are a little on the high side, but not horrible. I agree with the recommendation to drop the Growth Equity fund an...
by Peter Foley
Wed Nov 15, 2017 9:32 pm
Forum: Investing - Help with Personal Investments
Topic: Too much risk for early retirement?
Replies: 21
Views: 3285

Re: Too much risk for early retirement?

If your 457 account is substantial, that plus some Roth conversions would be an approach to get you to 59.5 to access other funds. An unknown in terms of providing advice is what is the cost basis of your taxable account holdings.
by Peter Foley
Wed Nov 15, 2017 9:24 pm
Forum: Investing - Theory, News & General
Topic: Do you subscribe to taking risk only on the equity side
Replies: 40
Views: 2451

Re: Do you subscribe to taking risk only on the equity side

Answer to the original question, "yes."

That is why I have my non equities split between total bond, stable value and TIPS.
by Peter Foley
Wed Nov 15, 2017 9:21 pm
Forum: Investing - Help with Personal Investments
Topic: Investing help family of four....Do nothing?
Replies: 22
Views: 1959

Re: Investing help family of four....Do nothing?

livesoft wrote: In your shoes, I would contribute the maximum allowed to a 401(k) which is $18,000 in 2017 and $18,500 in 2018. You should change your contribution from your paycheck TONIGHT! You can even have ALL your paycheck to your 401(k) for the rest of the year and just use the TAXABLE account...
by Peter Foley
Tue Nov 14, 2017 9:28 pm
Forum: Investing - Theory, News & General
Topic: Buffett 90/10 Portfolio vs Target Retirement
Replies: 29
Views: 3382

Re: Buffett 90/10 Portfolio vs Target Retirement

eye.surgeon wrote: Keep in mind you have plenty of international exposure holding 90% in S&P 500 since much of the profits of those companies you own is international. While I hold some international, about 7% of total portfolio and 12% of equity portfolio, I have always rationalized that because I ...
by Peter Foley
Mon Nov 13, 2017 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Advice needed for parent's finances
Replies: 38
Views: 3774

Re: Advice needed for parent's finances

Guitarguy wrote: Comments in red. 1. From an asset allocation standpoint, it seems to me like she's way overexposed to the market for her age at essentially 100% stocks plus some cash. My guess is none of this has been changed or even really examined since my dad passed (1996), and just to clarify m...
by Peter Foley
Sun Nov 12, 2017 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: How do you project the amount you will have to spend annually in retirement?
Replies: 76
Views: 4382

Re: How do you project the amount of income you will have in retirement?

I built my own spreadsheet. Here are the column headings: Year - Age Husband - Age Wife - Estimated Spending - Pension - Rental Income - Social Security -Total Income - Investment Income need - -Portfolio return @ 4% - Total Income - Annual Surplus -Year end assets Inflation factors are built into t...
by Peter Foley
Sat Nov 11, 2017 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: allocation and diversification durring retirement
Replies: 4
Views: 646

Re: allocation and diversification durring retirement

I'm okay with a fairly heavy cash position early in retirement. Three years of cash needs is a common recommendation, although I've seen two years recommended more frequently. The one thing I would do is move some tax deferred and Roth S&P 500 holdings into Total Stock Market for a bit better divers...
by Peter Foley
Sat Nov 11, 2017 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised funds
Replies: 44
Views: 1841

Re: Donor Advised funds

Just to emphasize a couple of the DAF advantages mentioned here. It allows you to donate appreciated shares and not pay taxes. You can donate specific amounts to the DAF in a given year that provide additional tax relief elsewhere: e.g., donate enough to remain in the 15% tax bracket so dividends an...
by Peter Foley
Fri Nov 10, 2017 10:04 pm
Forum: Investing - Help with Personal Investments
Topic: 457b or Traditional IRA?
Replies: 6
Views: 610

Re: 457b or Traditional IRA?

Because you mention a state pension I have to believe that your 457b is a governmental plan. Typically these are very good options. There is likely to be one or two good low cost index mutual funds.
by Peter Foley
Wed Nov 08, 2017 10:30 pm
Forum: Investing - Help with Personal Investments
Topic: Different goals/allocations on different accounts
Replies: 6
Views: 513

Re: Different goals/allocations on different accounts

I would go with the revised plan. As a resident alien and a student your status is a bit unique here. Speaking as a former PhD. candidate, I would advise that your goal be less saving for retirement and more avoiding student debt and any other debt. You will have more flexibility in terms of pursuin...
by Peter Foley
Tue Nov 07, 2017 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: When did you start investing in taxable accounts?
Replies: 23
Views: 2616

Re: When did you start investing in taxable accounts?

I inherited a few stocks (less than $20K) in my late 20's. I caught the investing bug then. For a while I thought I was a great stock picker - I later realized it was the rising tide.
by Peter Foley
Tue Nov 07, 2017 10:58 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation and placement critique/feedback
Replies: 13
Views: 1031

Re: Asset allocation and placement critique/feedback

I would like to reiterate Taylor's comment that you have not chosen poorly, you have a good mix of funds. While the mix could be a little more simple, what you have is fine. In your current mix you are missing mid cap and small cap stocks. Going with Total Stock Market in lieu of S&P 500 would add t...
by Peter Foley
Sat Nov 04, 2017 10:46 pm
Forum: Investing - Help with Personal Investments
Topic: Which account to withdraw from - Roth or Taxable?
Replies: 10
Views: 1328

Re: Which account to withdraw from - Roth or Taxable?

While it is hard to say without a complete picture of what percentage of assets you hold in taxable, tax free and tax deferred, I too would be inclined to take from taxable. You paid taxes to convert some tax deferred to a Roth. Those dollars have to grow tax free in the Roth for a number of years t...
by Peter Foley
Sat Nov 04, 2017 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: Can someone here help me estimate taxes?
Replies: 13
Views: 1118

Re: Can someone here help me estimate taxes?

Are you looking for an estimate of your Federal taxes, State taxes or both? You list your salary. Does your wife work? There are one-line calculators that will provide estimates of your federal taxes. At a minimum you will need to know the following inputs: salary income, other income (investment in...